Synergy Brands Reports 2009 Guidance
12 August 2009 - 10:30PM
Business Wire
INDUSTRY: Manufacturing and Distribution of Consumer Foods
Products
Synergy Brands: OTC: SYBR Shares Outstanding: 15.1 million Recent
Price: $0.70 52 Week High Low: $1.29/0.32 Market capitalization:
$11 million P/E (2008): 31 P/E (2009): 10 INDUSTRY P/E RANGE: 20-25
Five Year Growth: 19% EPS Growth: 134%
Synergy Brands (SYBR) reported record sales and profits for the
six months and three months ended June 30, 2009. SYBR manufactures
and distributes grocery food products through its wholly owned
subsidiaries PHS Group (PHS) and Quality Food Brands (QFB)
predominately in the United States and Canada. The Company has been
able to generate record results by streamlining its manufacturing
and distribution costs as well as forecast its commodity costs to
achieve competitive retail pricing for its customers. The Company
manufactures proprietary grocery packaged brands under the
“Loretta”, “Country Value” and “Gourmet Select” labels as well as
store brands and private label brands for its customers. The
Company plans to grow through the expansion of its labels as well
as developing licensed products for its manufacturing
operations.
Synergy guidance projects that the Company should break $100
million in sales in 2009 and believes it can maintain a 20% Revenue
growth and a 15% profit growth in the next 2 years. The Company is
shifting its distribution revenues to manufacturing based sales to
service national grocery chains predominately in the following
retail categories: baking mixes, mashed potatoes, pasta salads,
spices, mac & cheese, oatmeal, rice & beans, pancakes,
packaged meals and flour.
The Company’s operating cash flow runs higher than normal
standards due to high level of non cash charges incurred in the
acquisition of the Michigan operations in 2007 and additional
stock-based non cash charges in connection with completed prior
debt financings. Cash flow is expected to be 12 cents per share in
2009 and also grow at a 15% annual rate in the next 2 years.
More information about Synergy Brands could be found at www.sybr
or by contacting:
Forward-looking statements:
This media release and Company review and assumptions made
regarding the financial figures and other information, referenced
and presented, state and reflect assumptions, expectations,
projections, intentions and/or beliefs about past and future events
that are intended as “forward-looking statements” under the Private
Securities Litigation Reform Act of 1994. You can identify these
statements by the fact that they do not relate to historical or
current facts. They use words such as “anticipate”, “estimate”,
“project”, “forecast”, “may”, “will”, “should”, “expect”, “assume”,
“believe” and other derivations thereof and other words of similar
meaning. In particular, these include, but are not limited to,
statements reflecting the projected business activities and goals,
revenues, earnings, non-GAAP measures of operations, profit and
loss of the Company and associated costs. Any or all of the
Company’s forward-looking statements may turn out to be wrong. They
can be affected by inaccurate assumptions or by known or unknown
risks or uncertainties. This
release is issued for informational purposes only and should not be
relied upon for any investment based decisions.